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The effect of energy consumption on countries’ economic efficiency: a conditional robust non parametric approach

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  • Halkos, George
  • Tzeremes, Nickolaos

Abstract

This paper investigates the effect of energy consumption on countries’ economic efficiency. By using a sample of 18 EU countries for three census years (1980, 1990 and 2000) the paper employs conditional and unconditional robust nonparametric frontiers in order to establish such a relationship. By using probabilistic approaches it conditions the effect of energy consumption on the obtained countries’ economic efficiencies. With the use of nonparametric regressions the paper calculates the effect of energy consumption. The results reveal that lower levels of energy consumption increase countries’ economic efficiencies to a point where the effect of energy consumption on countries’ economic efficiency is neutral.

Suggested Citation

  • Halkos, George & Tzeremes, Nickolaos, 2011. "The effect of energy consumption on countries’ economic efficiency: a conditional robust non parametric approach," MPRA Paper 28692, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:28692
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    File URL: https://mpra.ub.uni-muenchen.de/28692/1/MPRA_paper_28692.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Energy consumption; economic growth; robust efficiency estimators; conditional nonparametric techniques;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General

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